Head-To-Head Comparison: Global Fashion Group (OTCMKTS:GLFGF) and GAP (NYSE:GPS)

Global Fashion Group (OTCMKTS:GLFGF) and GAP (NYSE:GPS) are both consumer cyclical companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Global Fashion Group and GAP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Fashion Group	0	0	0	0	N/A
GAP	0	7	9	0	2.56

GAP has a consensus target price of $26.51, indicating a potential upside of ∞. Given GAP’s higher probable upside, analysts clearly believe GAP is more favorable than Global Fashion Group.

Earnings and Valuation

This table compares Global Fashion Group and GAP’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Fashion Group	N/A	N/A	N/A	N/A	N/A
GAP	$15.00 billion	0.00	$502.00 million	$1.80	N/A

GAP has higher revenue and earnings than Global Fashion Group.

Profitability

This table compares Global Fashion Group and GAP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Fashion Group	N/A	N/A	N/A
GAP	4.52%	27.57%	6.30%

Institutional & Insider Ownership

58.8% of GAP shares are held by institutional investors. 30.8% of GAP shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

GAP beats Global Fashion Group on 8 of the 8 factors compared between the two stocks.

About Global Fashion Group

Global Fashion Group S.A., together with its subsidiaries, operates e-commerce platforms for fashion and lifestyle markets in Latin America, Southeast Asia, Australia, and New Zealand. It offers products for various fashion and lifestyle categories, such as apparel, footwear, accessories, beauty, and sportswear. The company also provides associated ancillary services, such as marketing, technology, payment, warehousing, and logistics services; trustee, consultancy, finance, and IT services; and online retail services, as well as operates as a general partner. It operates through three e-commerce platforms, which include Dafiti, ZALORA, and THE ICONIC. The company was formerly known as Global Fashion Holding S.A. and changed its name to Global Fashion Group S.A. in March 2015. Global Fashion Group S.A. was founded in 2011 and is based in Senningerberg, Luxembourg.

About GAP

The Gap, Inc. operates as an apparel retail company. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Its products include adult apparel and accessories; and fitness and lifestyle products for use in yoga, training, sports, travel, and everyday activities for women and girls. The company offers its products through company-operated stores, franchise stores, websites, and third-party arrangements. It has franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta stores and websites in Asia, Europe, Latin America, the Middle East, and Africa. The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.